Top 5 Small Cap Stocks That Witnessed Steep Decline After Bonus Issue In 2022

Whenever corporate actions take place, the price of the specific stock tends to witness a surge. And, one such most awaited corporate action is bonus issue announcement. However, despite issuance of bonus shares, 5 leading stocks suffered sharp decline and delivered negative returns.

These stocks are Nandan Denim, Brightcom Group, Virinchi, EKI Energy, and Ruby Mills. The decline in stocks' value has been calculated from ex-bonus date of the stocks till December 30, 2022.

1. What is bonus share?

These are additional shares given to the existing shareholders without any extra cost, on the basis of the number of shares that a shareholder holds. Bonus shares are company's accumulated earnings which are not given out in the form of dividends, but are converted into bonus shares or free shares.

1. Nandan Denim

The stock announced bonus issue on February 10, 2022 in 2:1 ratio. The ex-bonus date was March 24, 2022. Since March 24, 2022 to date (December 31, 2022), the stock delivered 58% negative returns.

The price of the stock was Rs 60 apiece as of March 24, 2022 and the last trading price of the stock as of December 30, 2022 was Rs 25 apiece. However, the stock has delivered positive return of 186% in last 3-years. The small cap textile sector stock came into existence in 1994.

2. Brightcom Group

The stock announced bonus issue on January 25, 2022 in the ratio of 2:3 and the ex-bonus date was March 15, 2022. Since March 15, 2022 the stock witnessed a decline of 55%.

The stock's last trading price on March 15, 2022 was Rs 64 and the stock's last trading price on December 30, 2022 was Rs 29 apiece.

The small cap IT software company was incorporated on 1999. The stock has given maximum 984% return in last 5-years.

4. Virinchi Ltd

The stock declared bonus issue on February 4, 2022 and the ex-bonus date was March 21, 2022. Since March 21, 2022, the stock has seen a steep fall of 43%.

The stock's last trading price was Rs 67 as of March 21, 2022 and since then the stock's last trading price declined to Rs 38 apiece. The small cap IT Software stock was incorporated in 1990. The stock has given 123% return in last 3-years.

5. EKI Energy Services Ltd

The stock made the bonus issue announcement on May 17, 2022 and the ex-bonus date was July 4, 2022. The stock witnessed a strong decline of 43% since July 4, 2022 to December 30, 2022.

The stock's last trading price was Rs 2248 on July 4, 2022 and it came down to 1291 apiece on December 30, 2022. It has a market capitalisation of Rs 3579 crore. The stock has given 402% return in last 1-year.

6. Ruby Mills

It declared bonus issue on August 10, 2022 and the ex-bonus date was 23 September, 2022. The stock was price Rs 331 apiece on September 23, 2022 and since then it declined to Rs 199 apiece (December 30, 2022).

The stock suffered a decline of 40% since September 23 to December 30, 2022. The small cap stock operating in Textile sector has a market capitalisation of Rs 666 crore. The stock has given maximum return of 114% in last 3-years.

Disclaimer

The stocks give details of negative returns after ex-bonus date till December 30, 2022. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.